If the market price is efficient - how can retail profit

Based on Efficient Market Hypothesis.
If price was inefficient and traded to efficiency, how would one profit from unpredictable price movements?

This is what ChatGPT says:
Given the assumptions of the EMH, it suggests that it is difficult to consistently profit from unpredictable price movements. However, it's important to note that the EMH is a theory and has faced criticisms and challenges over the years. Some argue that certain market inefficiencies may exist, and it is possible to exploit them temporarily through strategies such as arbitrage or short-term trading. However, any sustained abnormal profits would be unlikely, as markets are generally efficient at quickly incorporating new information.

It's worth mentioning that there are alternative investment strategies that do not rely on predicting price movements, such as long-term investing, diversification, and asset allocation based on individual goals and risk tolerance. These strategies focus on factors other than short-term price fluctuations to generate returns over the long run.

The idea is that when new information comes out, the market reacts quickly, making it hard to take advantage of any inefficiencies. So, in short, it's difficult to make money from unpredictable price changes when the market is efficient.

EMH was disproved, there are many inefficiencies

Price is not efficient, it's easy to see on every asset class.

If prices were efficient, all of these lines/distributions would match the red ones perfectly.





Also if markets were efficient, how could Goldman's trading desk performance look like this year after year after year (every year is available in their 10K):

Long term. Arbitrarily add an overvalued model and undervalued. Since from there all goes to the mean, you then sell if its too expensive and exit when it's in the 50%. Buy if its super cheap, exit when it goes to the mean.